As Nvidia Discloses a 9.3% Stake in Nebius, Here's How You Should Play NBIS Stock
As Nvidia Discloses a 9.3% Stake in Nebius, Here's How You Should Play NBIS Stock.
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For months, Nebius Group N.V. (NBIS) has been making a name for itself in the fast-growing AI infrastructure market. But this week, the company suddenly grabbed attention after a regulatory filing revealed that artificial intelligence (AI) giant Nvidia Corporation (NVDA) now holds a 9.3% stake in the neocloud provider.
While Nvidia's $2 billion investment in Nebius was already known, the new filing showed that its beneficial ownership also includes millions of shares tied to a pre-funded warrant that becomes exercisable later this year, giving investors a clearer picture of just how significant Nvidia's commitment really is.
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Wall Street did not waste time reacting. NBIS stock jumped 2.76% in extended trading on Monday before surging another 18.78% on Tuesday as investors viewed the disclosure as a strong vote of confidence from the company powering much of today's AI revolution.
Of course, Nvidia's backing alone does not guarantee smooth sailing. Nebius still has to execute on its ambitious growth plans in an increasingly competitive AI infrastructure market. With the stock suddenly back on investors' radar after its sharp rally, the big question now is whether there's more room to run, or whether much of the good news is already reflected in the price.
How should investors approach NBIS stock from here? Let's get into more details.
Headquartered in Schiphol, the Netherlands, Nebius Group is an AI infrastructure company that's focused on building a full-stack cloud platform for AI applications. The company provides large-scale GPU clusters, AI cloud services, and developer tools that help enterprises train and deploy AI models.
Beyond its core business, Nebius owns a technology-focused reskilling platform, TripleTen, and Avride, which develops autonomous driving and delivery robotics technologies. Backed by a strategic partnership with Nvidia, Nebius is rapidly expanding its AI cloud infrastructure to serve customers across industries, including healthcare, finance, robotics, and government. Led by founder and CEO Arkady Volozh, the company has also expanded into AI supercomputing and today commands a market capitalization of $54.9 billion.
Nebius has rewarded investors who were willing to stay the course. Over the past 52 weeks, NBIS stock has surged an eye-popping 341.2%, while jumping by 168.8% year-to-date (YTD). The rally gathered steam after the company's stellar Q1 2026 earnings report in May and its inclusion in the Nasdaq-100 Index in June, proving that success tends to snowball once Wall Street starts paying attention.
Still, every bull run eventually catches its breath. After hitting a record high of $299.86 on June 22, NBIS lost momentum as investors locked in profits amid broader concerns that AI valuations had run too far, too fast.
Now, the tide appears to be turning again. The stock has rebounded 21.54% over the past two trading sessions following Nvidia's stake disclosure, with a fresh wave of bullish analyst calls adding fuel to the recovery.
Technically, the picture is steadily improving. The 14-day Relative Strength Index (RSI) has recovered to 52.51, suggesting bearish momentum has slightly cooled, and the stock is no longer in an overheated or oversold zone.
While NBIS remains below its 50-day moving average, the recent rally has narrowed the gap considerably. Clearing that resistance could mark the next leg higher for the stock. More importantly, the stock continues to trade comfortably above its 200-day MA, a sign that the longer-term uptrend remains firmly intact despite the recent pullback.
Valuation-wise, NBIS stock is priced at 16.36 times forward sales, representing a premium to the sector average.
